Real Estate

Archive for March, 2010

Forclosure Sales: Boom Or Bust?

Now that banks are having to repossess homes from delinquent mortgagors some buyers are asking “should I buy a bank owned property”? Even with years of real estate experience and knowledge the best answer here is still: “It depends.” Shopping around and knowing the particulars of each sale are still vital as they can vary widely from one house to the next. Arming yourself with some basic information on these types of transactions should also help to give you an idea of the risks and potential gains involved.

SHOP AROUND

Bankowned or REO real estate owned properties can vary in condition from damaged to excellent and be priced properly at market or be a great value. You just need to shop around. I have some clients that have found absolute gems priced 10 to 20 below market.

Even after you shop around though there’s still a fair amount of risk involved in buying this kind of property. Most of the homes in this category are sold in “ASIS” condition. In some cases you won’t even be able to inspect the house before you buy it. Banks won’t make repairs or be held liable for damages mold or the like so be prepared to sign lots of addendums exonerating them from any responsibility after the sale. Also the bank tends to place a per diem clause that may cost you 100 per day if you’re late in closing.

If you’re prepared to accept these conditions I say “Make an offer” and see what happens. Basically there are three types of foreclosure sales:

AUCTION
This is the riskiest way to purchase bankowned property but can also net the greatest financial gain. Some estimates say 25 off the original purchase price is common. If you want to play the auction game you’ll have to pay cash and you’ll have to forego any kind of inspection. Auctioned homes are truly “ASIS.” There is also no way to avoid the fact that you are profiting from someone else’s misfortune with this option. People who are losing their homes may refuse to move out or may damage the property in anger

SHORT SALE
This isn’t really a foreclosure sale but a sale the homeowner makes in order to ward off foreclosure and do some damage control. Also known as preforeclosure this is when you buy from a homeowner before the bank intervenes. You can inspect the house before you buy when you go this route but be warned many of these deals are stalled or squashed by the banks before they’re closed.

REO
This is when you buy a foreclosure from a real estate company. REO presents the least risk of all three options. You have clear title right to inspect and can get your financing in line first. You won’t get as great a deal as you could by buying at an auction but for many buyers the reduced headache is well worth it.

One thing I can say for certain: banks NEVER want to own these REO properties they just want to lend money and collect mortgage payments. When a property becomes bank owned it’s because the borrower has forced the bank to foreclose that is it. What this usually means for buyers is a clear chance to purchase a home from a very willing seller.

About the writer:  Scott Baxter is a licensed real estate agent specializing in Prescott Arizona real estate. If you’re looking for a home in Arizona Scott can help with negotiating the deal in your favor and closing on time. Contact him for personalized incisive and economically sound advice or visit www.prescottscott.com.

Financing Options For Mobile Homes

When buying a home one of the options available to people who do not have enough money but are thinking of purchasing housing is through financing. While this may be true for traditional houses the same cannot be easily said for mobile homes. Obtaining a loan to purchase a mobile home is still a pretty difficult thing to do although there are signs of lending companies beginning to come up with loans that can suit the needs of mobile home buyers.

The Mobile Home Loan: Not a Mortgage

Even when you might call a mobile home a house the loan that you may be granted to purchase one is usually not considered as a mortgage therefore you are not entitled to tax benefits that mortgages may get. A lot of banks and some lenders do not consider giving out long term loans for the purchase of mobile homes simply because they are seen as risky loans. The value of mobile homes is not seen to rise in value unlike their traditional counterparts the sitebuilt houses. With this fact in mind lenders who do give out mobile home loans often place a hefty interest rate on these kinds of loans and sometimes give these loans terms that last lesser than the usual 15 to 30 years that home loans have on them.

These lending institutions also take into account the reasons why a person decides to buy a mobile home instead of the traditional home. This usually equates to the person not having enough financial clout to lean towards the purchase of a traditionally constructed house. This thought plays a huge part in the granting of loans for mobile home purchases and the weeding out of those who can pay for the loan from those who are seen as incapable of doing so.

Getting Your Loan for a Mobile Home Purchase

Despite the flak that mobile home buyers may get from lending institutions about their home choice there are some lenders who do welcome people who opt for these convenient and fast home options. Getting a mobile home loan from lenders who do allow it is becoming more rampant of late and many of them are beginning to treat these mobile home loans like mortgages giving these mobile home buyers the 5 percent down payment option with 20 to 30 years to pay off the loan. This is a huge change from the usual 10 percent down payment that was required from buyers years ago that also carried a short 15 to 20 year repayment term.

One easy way to have your mobile home loan treated as a mortgage is to own the land your mobile home is placed on. The advantages that people who do this have over those who place their mobile homes in mobile parks include tax benefits and no land rental fees.

While it is still pretty tough for people to get good quality loans to purchase mobile homes it is possible to find relatively good loans to use to purchase these new and improved mobile residential choices.

About the writer:  Perfect Information of real estate investors to reach record level revenue through internet. To know more about Jeff AdamsReal Estate Investor WebsitesReal Estate Web Profits visit http://www.realestatewebprofits.com.To contact the author maximusmejogmail.com.

Fed Needs To Cut Rates More

The Federal Reserve Board of Governors needs to quickly cut interest rates further in order to stop the U.S. housing market slow down from worsening and avert a national recession according to a new report by Housing Predictor.

The Fed finally acted to cut interest rates by a half a point and help the U.S. economy especially the nation’s ailing housing market. But the Fed’s step to cut the chief bench mark rate is already too little too late for many American homeowners.

A record number of homeowners in the millions are facing foreclosure or at least the threat of losing the roof over their heads. The crisis has exploded into the greatest foreclosure epidemic since the U.S. Savings and Loan Fraud Crisis in the late 1980′s and threatens to worsen and produce the worst housing crisis since the Great Depression.

The Fed acts to maintain a balance of the national economy in order to avert economic down turns and hold off inflation. But the overall economy in the U.S. has already been damaged by the weakening U.S. housing market. Prices are declining in the majority of real estate markets and too many Americans have used their homes as piggy banks to borrow against them.

The additional turmoil caused by the lack of mortgage funding for many loan companies and the resulting credit crunch with troubles on Wall Street has led lenders into a path of chaos and threatens to undermine the entire mortgage loan business as we currently know it according to Housing Predictor analysts.

The discount rate cut of 50 basis points which equates to a half point rate cut in interest rates may be the first step in a long series of rate cuts the Fed is on to help improve the ailing U.S. housing market. The Fed left open the door in wording with the announcement of the rate cut that it is open to further reductions.

Housing Predictor forecasts more than 250 local housing markets futures in all 50 U.S. states and regularly updates it forecasts and information. Search for homes including foreclosures and get the latest on your markets forecast at Housing Predictor.

About the writer:nbsp;nbsp;About Author: Before buying a home in Chesterfield St. Louis St. Charles St. Peters OFallon Cottleville Wentzville Dardenne Prairie or Weldon Springs areas of Missouri contact Kathy Helbig at 6365782555 or by visiting our website:
http://www.arealuxuryhomes.com/